Abu Dhabi Fund for Development finances Dhs387m energy security project in Tanzania

Abu Dhabi Fund for Development finances Dhs387m energy security project in Tanzania

Image: ADFD

The Abu Dhabi Fund for Development (ADFD) has signed a loan agreement with Tanzania worth Dhs387m ($105.4m) to enhance energy security in the country.

The project’s objective is to fully connect the Kagera administrative region with the national electricity grid, reducing dependency on energy imports from Uganda and providing sustainable and safe electricity sources to communities, economic areas and service facilities.

Mohamed Saif Al Suwaidi, director general of ADFD, said that this strategic project was a significant step towards the development of Tanzania’s energy sector and ensuring sufficient electricity supplies to meet the population’s needs sustainably.

“The fund will collaborate with Tanzanian partners to support their development programmes and work towards the UAE’s future aspirations and the fund’s strategic objectives of accelerating energy projects globally for the betterment of developing countries’ societies,” he said.

ADFD-Tanzania ties

Dr Mwigulu Nchemba, Minister for Finance of Tanzania acknowledged the longstanding relationship between the ADFD and Tanzania since 1977, which has played a vital role in implementing development projects and contributing to economic and social progress in the country.

He emphasised that the project’s financing will reduce energy import dependency, stimulate economic activities, develop existing industries, and create job opportunities for the population.

ADFD has previously financed six development